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Napolitano Wants Answers from Feds About Rising Gas Prices

by Associated Press (March 24th, 2007 @ 7:45am)

After seeing the cost of gasoline rise 20 cents per gallon in the past two weeks, Gov. Janet Napolitano wants federal energy officials to investigate the sudden spike in energy prices that is hitting Arizona.

Napolitano sent a letter Friday to U.S. Energy Department Director Samuel Bodman, stating that she wants a clear explanation from the energy department for the unexpected surge.

Energy officials have told the governor's office the sharp rise resulted from high crude oil prices and from a supply shortage caused by damaged U.S. refineries while other reasons are seasonal.

Some oil refineries are switching from a winter fuel blend to summer fuel blend, which can cause production to slow.

But Napolitano is unhappy with those reasons, because they don't explain why the industry is not prepared to handle those situations.

"The drivers in my state and across the nation are justifiably frustrated with the most recent price surge," Napolitano wrote.

The governor suggested that allowing more companies to compete could solve many of the problems within the industry.

She noted in the letter that no new refinery companies have entered the market in the past 30 years - giving the existing firms little incentive to improve their services.

The average cost for regular unleaded gas has risen 44 cents a gallon in Arizona during the past month. The national average rose 30 cents a gallon during the same period.

Steve Meissner, a spokesman for the Arizona Department of Weights and Measures, said he wouldn't be surprised to see prices hit $3 a gallon by summer if the trend continues.

Meissner said an oil refinery in Texas that has been temporarily damaged could be causing some of the additional financial burden for Arizona drivers because a large portion of Arizona's gas comes from Texas refineries.